Caroline Ellison, former Alameda CEO reveals over $100 million in China bribes: SBF trial revelations


  • Caroline Ellison was on direct examination for the third straight day, with questions on whether she and SBF used coded language.
  • Ellison said $1 billion dollars in FTX funds were frozen on two Chinese exchanges.
  • SBF pushed for the bribe to recover funds, which was made through the accounts of Thai sex workers as a precaution.
  • Co-CEO Sam Trabucco, who stepped down before Alameda's fallout, may be called in as witness.

Caroline Ellison, the former CEO of hedge fund Alameda Research and ex-lover of the defendant Sam Bankman-Fried (SBF) was on direct examination for the third straight day, as a witness, with the prosecution seeking to find out whether she and the accused used coded language, according to a transcript of the trial published by journalist Matthew Russell Lee.

Also Read: Sam Bankman-Fried conspired to keep Bitcoin price under $20,000, day six revelations from Caroline Ellison

Caroline Ellison revelations on day three in court

Caroline Ellison was asked whether she and SBF used coded language, responding with an affirmative and specifying that it did happen when it concerned the bribe paid to the Chinese.

Specifically, she revealed that when up to $1 billion in funds pilfered from the exchange’s customers got stuck in two China-based exchanges, they resorted to mafia-like tactics to get it unfrozen. In detail, she explained that SBF wanted it done, effective, nobility be damned. To do so, they went through one David Ma, hatching a rather perfect bribery plan.

For the funds to be released, up to $150 million in bribes was paid to Chinese government officials, but for precaution, the money was deposited in the accounts of Thai sex workers.

Another FTX staff named Handi Yang, daughter of a Chinese government official had opposed the bribe, according to Ellison. Reportedly, Handi went as far as mocking Ellison on messaging platform Signal, saying “[my father would] immediately turn us all in.” Handi quit in early January 2022 because she disagreed with the decision to pay bribes to Chinese officials, as her father was one himself. According to Ellison, Handi had argued with SBF about it; during that argument, he allegedly told her to “shut the fuck up.”

Another name that came up amid the bribery discussion was Sam Trabucco, who mysteriously exited the company. According to the witness, both SBF and Trabucco had asked her to make the transfer for the bribe, noting that at the time she did not know who she was transferring to.

A month after Yang quit, Trabucco wrote in a Signal chat, “Did Handi’s father immediately turn us in or something?” Bankman-Fried replied, “lol.”

Eventually, Trabucco mysteriously exited the company, with Ellison revealing that SBF had raised the possibility of hiring a co-CEO for the unit after Trabucco’s resignation. Ellison advocated for herself to remain the sole CEO.

Trabucco may be a person of interest in the proceeedings.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP